SEC Proposes Ending Climate Disclosure Rules and Quarterly Reporting for Public Companies

The U.S. Securities and Exchange Commission (SEC) has taken a significant step toward deregulation by proposing to eliminate climate disclosure rules implemented during the Biden administration and reducing mandatory quarterly reporting for publicly traded companies.

SEC Advances Plan to Scrap Climate Rules and Quarterly Reporting

The SEC sent a proposal to the White House’s Office of Management and Budget for review on May 4, according to a government website post first reported by Bloomberg. The 2024 disclosure rule, which had already been weakened, required companies to report on climate-related risks, including extreme weather impacts and Scope 1 and Scope 2 emissions. Scope 3 emissions, which cover supply chain and customer use, were excluded from the final version.

In a broader deregulatory move, the SEC also proposed eliminating mandatory quarterly reporting for U.S.-listed companies, replacing it with twice-yearly filings. SEC Chair Paul Atkins told the Financial Times that the change would provide "increased regulatory flexibility" and allow companies to focus on long-term goals rather than short-term reporting pressures.

"Public companies have an obligation under the federal securities laws to provide information that is material to investors. Yet, the rigidity of the SEC’s rules has prevented companies and their investors from determining for themselves the interim reporting frequency that best serves their business needs and investors."

While framed as part of a deregulatory agenda, the proposal could indirectly support climate action. Critics of quarterly reporting argue that it discourages long-term investments in decarbonization, which often take longer than three months to yield returns.

Wave Energy Startup Raises $140 Million to Advance Offshore Data Centers

Wave energy remains one of the most challenging renewable energy sources to harness, despite its potential. Unlike tidal energy, which uses predictable underwater currents, wave energy is highly variable and difficult to stabilize. While tidal power has seen commercial success—with operational turbines in France and other regions—wave energy has struggled to gain traction due to technical and economic hurdles.

However, wave-energy startup Panthalassa has raised $140 million in a Series B funding round led by Silicon Valley billionaire Peter Thiel, signaling renewed investor interest in the sector. The company aims to leverage wave energy to power offshore data centers, offering a sustainable alternative to traditional energy sources for high-tech infrastructure.

Current Global Weather Conditions

• U.S. East Coast: The Acela corridor is cooling this week, with temperatures dropping from 85°F in Philadelphia yesterday to the 60s for the remainder of the week.
• South Africa: Cape Agulhas is under an Orange Level 6 warning, one of the country’s most severe alerts, due to damaging winds and dangerous waves.
• Brazil: Floods and landslides in the northern state of Pernambuco have resulted in six deaths and displaced thousands of residents.